USA secretary of commerce sides with Boeing on Bombardier dispute
22 December, 2017, 02:09 | Author: Sheri Evans
Boeing said Bombardier hurt its chances of selling its 737 airplane in the USA, which Bombardier denies.In a twist, European aerospace company Airbus, Boeing's chief rival, swooped in October, agreeing to buy a majority stake in the struggling C Series program.Bombardier plans to build the planes in Mobile, Alabama, where Airbus assembles narrow-body jets.
Chrystia Freeland, Canada's minister of foreign affairs, said the decision to impose high duties hurts workers on both sides of the border.
Canada's government will review the final determinations to consider next steps and options for appeal, she said.
Steve Turner, Unite assistant general-secretary, said: "The US Commerce Department decision on C-Series tariffs is nakedly political and has the potential to crush jobs, not only in Northern Ireland but in the US too".
The change was caused by a reduction in the countervailing duty to 212.39%, while the anti-dumping duty remains at 79.82%.
"The United States is committed to a free, fair, and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports", he said in a news release.
"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and US industry", Boeing said in a statement.
The final decision on the Bombardier tariffs now rests with the U.S. International Trade Commission, which is expected to decide in February whether Boeing was harmed by the C Series.
The US government chose to affix high anti-subsidy tariffs on the Bombardier's CSeries jets, after Boeing Co complained that the Canadian company had received unfair subsidy from their government which, it argued, allowed Bombardier to sell their new aeroplane below cost.
He also added: "We would urge the US International Trade Commission to do the right thing for fair trade and jobs by finding against Boeing and setting aside the commerce department's determination when it makes its final decision in the New Year".
"There's no case here", Bombardier's Bellemare said, calling the complaint "ridiculous".
In October, shortly after the preliminary tariffs were announced, Boeing's European archrival Airbus took a majority stake in the C-Series program, and announced the planes would be built at the Airbus plant in Mobile, Alabama.
The company argued that it is seeking a "level playing field" in the aerospace market.
Bombardier calls Boeing's criticism an "unfounded assault on airlines, the flying public, and the United States aerospace industry", saying the entire complaint has been overtaken by events.
The Bombardier CSeries jets are narrow-body commercial aircraft for medium-range routes, a category also served by Boeing with its 737 series and Airbus with the A320 series.
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